Diane Costagliola is a researcher, librarian, teacher, and has published articles on private finance, home buying, and foreclosures.
Diane Costagliola is a researcher, librarian, teacher, and has published articles on private finance, home buying, and foreclosures.
Investopedia / Michela Buttignol
Compare the rates and terms of the most productive cash market position accounts with the most productive high-yield savings accounts to find the right position to grow your cash. While MMA might offer less strain on your funds, you can find a savings account with a wonderful rate and lovely terms.
The amount up to which the FDIC insures MMA and CD on an account basis, according to the insured bank, for the asset class.
Money market accounts are invested more than certificates of deposit. MMAs are similar to savings accounts, with variable interest rates and smart liquidity. CDs regularly have constant interest rates and can earn more interest over time, but you’ll have to wait until the CD matures to access your deposit without incurring penalty.
MMAs are FDIC insured for up to $250,000 per user per account at each insured institution. It is possible to lose money if you have invested more than this amount and the bank goes bankrupt. Learn more about FDIC deposit insurance.
MMAs can be a smart investment if protection and liquidity are paramount, but they can pay lower interest rates than CDs. Sometimes, banks will adjust the APY of MMAs based on adjustments in the prime rate, so you can potentially earn more in an emerging rate environment. Unlike CDs, MMAs do not have a consistent maturity date and do not have penalties for early withdrawal.
Federal Reserve System. ” The Federal Reserve announces a tentative final rule to remove the six-month limit on convenient transfers from the definition of “savings deposit” in Regulation D.
U. S. Securities and Exchange Commission. “Money market funds. “
Federal Deposit Insurance Corp. “Your Insured Deposits. “
Consumer Financial Protection Bureau. What is a market account? »